India could sell more broken rice from reserves to free up storage, boost exports
India is considering a proposal to expand the sale of broken rice from state stockpiles into the open market, according to sources, a move that may boost supplies of the grain for exports and ethanol production.
NEW DELHI – India is considering a proposal to expand the sale of broken rice from state stockpiles into the open market, according to sources, a move that may boost supplies of the grain for exports and ethanol production.
The world’s top exporter launched a pilot programme earlier in 2025 to cut the proportion of broken grains in rice distributed through its food programme to 10 per cent from 25 per cent, diverting the remainder for industrial use.
The plan is expected to help state-run Food Corporation of India (FCI) trim its bulging reserves and free up some space for the upcoming harvest, as well as improve supplies of the raw material for ethanol makers, said the sources, who asked not to be named as the information is not public.
Under the current system, the food agency purchases unmilled rice from farmers at guaranteed prices and gives it to private millers for processing. The rice it receives in return often contains up to a quarter of broken grains.
A Food Ministry spokesperson did not immediately respond to a request for comment.
The initiative will help Indian households receive better-quality rice under the free food programme, while the FCI can reduce its storage costs.
At the same time, the ethanol sector stands to gain from cheaper raw material as extra supplies of broken rice flow into the market.
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Source : Straits Times
